DECW vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricDECWQQQWinner
Expense Ratio0.74%0.18%
AUM$226M$455.8B
Dividend Yield0.00%0.41%
Holdings5108
YTD Return+6.70%+18.31%
1Y Return+12.29%+25.37%
3Y Return (annualized)+10.66%+25.79%
5Y Return (annualized)-+15.20%
Volatility (annualized)6.8%30.6%
Max Drawdown-8.8%-83.0%
Fund FamilyAllianzIMInvesco (US)
CategoryAlternativeEquity
InceptionNov 30, 2022Mar 10, 1999

DECW vs QQQ Performance

AllianzIM US Equity Buffer20 Dec ETF (DECW) is a ETF from AllianzIM and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DECW returned +12.29% while QQQ returned +25.37%. Year to date, DECW is up 6.70% versus a gain of 18.31% for QQQ.

Over three years, DECW compounded at +10.66% per year against +25.79% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.10% annualized vs +10.83%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 6.8% for DECW. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -8.8% for DECW and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DECW charges 0.74% per year while QQQ charges 0.18%. On a $10,000 position that is $74 vs $18 annually, a gap of $56 per year that compounds over a long holding period. On income, DECW currently yields 0.00% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, DECW or QQQ?

DECW has an expense ratio of 0.74% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, DECW or QQQ?

Over the past year DECW returned +12.29% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), DECW annualized +10.83% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, DECW or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 6.8% for DECW. Worst drawdown: DECW -8.8% vs QQQ -83.0%.

Should I hold both DECW and QQQ?

DECW and QQQ have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, DECW or QQQ?

DECW yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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